HomeMy WebLinkAbout7 Conduct a Public Hearing & Consideration of Adopting Ordinance 2020-01, Approve GM Agreement w-AttachmentsAgenda Item #7
To:
From:
Date:
Subject:
Board of Directors
Steve C. Gross
June 03, 2020
Conduct a Public Hearing and Consideration of Adopting Ordinance
2020-01, Approving the General Manager's Employment Agreement
PUBLIC HEARING
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board of Directors hires the General Manager and approves the Employment
Agreement.
2. HISTORY
Michael Holley, the District’s General Manager has announced his retirement effective
at the end of July, 2020. On May 1, 2019, in preparation for his retirement and the
recruitment of the District’s next General Manager, the Board approved a professional
services contract with Pamela Hurt Associates to facilitate transition and succession
planning. Additionally, the Board appointed Director Laliotis and Director Finn to serve
as members of the General Manager Succession Ad Hoc Committee. Joe Horvath,
Electric Utility Director and Brian Wright, Water Utility Director were nominated to
represent staff on the Ad Hoc Committee.
Over the course of the ensuing months, the Ad Hoc Committee, with consultation from
Pamela Hobday of Pamela Hurt Associates, and input from District’s Executive
Leadership Team, staff and many of the community members of Truckee, identified
and prioritized core skill set competencies to be utilized in the development of the new
General Manager job description, position profile, candidate recruitment and interview
questions. Through this collaborative process, the Ad Hoc Committee identified 23
skill set competencies, of which 5 “hard skill sets” and 6 “cultural skill sets” were
prioritized. At the October 2, 2019 Board meeting, these skill set competencies were
presented to the Board for input and approval.
The District embarked on procurement of an executive recruiting firm. A request for
proposals was publicly noticed and opened. The Ad Hoc Committee reviewed each of
the firms, utilizing a scoring metric. After deliberation, the Ad Hoc Committee arrived at
the unanimous recommendation of Peckham and McKenney Executive Search to
provide professional executive recruiting services for the District's General Manager
position. The Board approved this recommendation on November 2, 2019.
Michael D. Holley
General Manager
Peckham and McKenny completed the initial screening and interviews, presenting the
Board a shortlist of nine candidates. The Board embarked on a series of workshops to
identify the top three candidates to interview.
3. NEW INFORMATION
In parallel to the recruitment firm process, the Board has had a number of special
meetings in preparation for the General Manager interview process. This robust and
complex interview process developed by Pam Hobday, Pamela Hurt Associates, was
utilized during the April 27th and April 28th General Manager interviews.
The Board of Directors has chosen, negotiated, and announced the unanimous
decision to hire Remleh Scherzinger as the District's General Manager/ Chief
Executive Officer.
California Public Utilities Code Section 16112 provides that the General Manager of
the District shall receive such compensation as is provided for by the Board by
ordinance. Therefore, Employment Agreement which establishes the General
Manager's compensation must be approved by an ordinance.
The District completed the legal posting time line set by the Board, to schedule a
public hearing. Tonight's item entails holding a public hearing and adopting Ordinance
2020-01 approving the General Manager's/Chief Executive Officer's Employment
Agreement.
The communication plan to announce Remleh "Rem" Scherzinger has been launched,
including a robust social media campaign, Facebook live event, press release,
community and regional communications.
5. RECOMMENDATION
1) Conduct a public hearing regarding Ordinance 2020-01,
2) Adopt Ordinance 2020-01 approving the Employment Agreement with Remleh
Scherzinger as the General Manager/Chief Executive Officer and Authorize the Board
President to sign the agreement.
{00887424.DOC 2 }
Ordinance No. 2020 - 01
APPROVING THE EMPLOYMENT AGREEMENT FOR THE
GENERAL MANAGER/CHIEF EXECUTIVE OFFICER
____________________________________________________________________
WHEREAS, the Board of Directors employs a General Manager/Chief Executive Officer to manage
the day by day affairs of the District;
WHEREAS, the Board of Directors wishes to employ Remleh Scherzinger as the District’s General
Manager/Chief Executive Officer of the District starting July of 2020 and enter into the Employment
Agreement attached hereto as Exhibit “A” which sets forth the terms and conditions of his employment
and establishes his compensation;
WHEREAS, Section 16112 of the Public Utilities Code provides that the General Manager of the
District shall receive such compensation as is provided for by the Board by ordinance.
THEREFORE, BE IT ENACTED, by the Board of Directors of the District that:
1. The Employment Agreement attached hereto as Exhibit “A” is hereby approved.
This Ordinance shall be effective thirty (30) days from the date of passage.
3. The District Clerk is directed to publish this Ordinance in accordance with the laws of the State
of California.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a
regular meeting thereof duly called and held within said District on the third day of June 2020 by the
following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By____________________________________
Jeff Bender, President of the Board
ATTEST:
______________________________________
Shanna D. Kuhlemier, CMC, District Clerk
{00887424.DOC 2 }
Exhibit “A”
TRUCKEEDONNERPUBLICUTILITYDISTRICTEMPLOYMENTAGREEMENTGENERALMANAGER!CHIEFEXECUTIVEOFFICER{00885101.I)0C2}
EMPLOYMENTAGREEMENTTABLEOFCONTENTSIntroductionP.1Section1:Employment,Term,At-WillEmployment,ResidenceandExtensionorRenewalP.1Section2:DutiesandAuthorityP.2Section3:BaseSalaryP.2Section4:InsuranceBenefitsP.2Section5:Vacation,AdministrativeDays,andSickLeaveandHolidaysP.2Section6:VehicleP.3Section7:RetirementP.3Section8:RelocationAssistanceP.3Section9:OtherBenefitsP.3Section10:GeneralBusinessExpensesP.3Section11:TerminationP.4Section12:SeverancePayP.4Section13:ResignationP.6Section14:PerformanceEvaluationP.6Section15:HoursofWorkP.6Section16:OutsideActivitiesP.6Section17:IndemnificationP.6Section18:BondingP.7Section19:DistrictPropertyP.7{00885101.DOC2}
Section20:Non-DisclosureofProprietaryorConfidentialInformationP.7Section21.ConflictofInterestP.8Section22:AssistanceinLitigationP.8Section23:OtherTermsandConditionsofEmploymentP.9Section24:NoticesP.9Section25:GeneralProvisionsP.9Appendix“A”GeneralReleaseAgreementP.12{00885101.DOC2}
EmploymentAgreementIntroductionThisEmploymentAgreement(“Agreement”)madeandenteredintothisDayofJuly,2020,byandbetweentheTruckeeDonnerPublicUtilityDistrict,(hereinaftercalledEmployer”)andRemlehScherzinger,(hereinaftercalled“Employee”or“Scherzinger”),anindividualwhohastheeducation,training,andexperienceinutilitymanagementtoperformtheservicesrequiredbyEmployer.EmployerandEmployeemaybereferredtohereinindividuallyas“Party”orcollectivelyas“Parties.”ThePartiesagreeasfollows:Section1:Employment,Term,At-WillEmployment,ResidenceandExtensionorRenewalA.TheEmployeragreestoemployEmployeeasGeneralManager,andheagreesandacceptsemploymentasGeneralManageruponthetermsandconditionssetforthherein.EmployeeshallreporttotheBoardofDirectorsatsuchtimesandinsuchmannerasisdirectedbytheBoard.HeagreestoperformthefunctionsanddutiesofGeneralManagerascurrentlyineffectorasmaybeestablishedordirectedbytheBoardofDirectors.GeneralManageragreestoperformallsuchfunctionsanddutiestothebestofhisabilityandinaccordancewiththehighestprofessionalandethicalstandardsofhisprofession.B.ThetermofthisAgreementshallbeforaperiodofapproximatelythree(3)yearsbeginningonJuly3,2020andendingonJuly31,2023.EmployeeshallbeginworkingonadatetobemutuallyagreeduponbyEmployerandEmployeethatisonorbeforeJuly20,2020.Allcompensation,benefitsandrequirementsofthisAgreementshallremainineffectuntiltheexpirationofthetermofthisAgreement,orsoonerifEmployeevoluntarilyresignsoristerminated.IfEmployeeisterminated,asdefinedinSection11ofthisAgreement,theEmployeeshallbeentitledtoallcompensationincludingsalaryandallaccruedvacationandadministrativeleavepaidinlumpsumplusseverancepayinaccordancewithSection12ofthisAgreement.C.TheEmployerandEmployeeagreethatEmployee’semploymentwithEmployerpursuanttothisAgreementis“at-will”,meaningthateithertheEmployerorEmployeemayterminatethisAgreementatanytime,foranyreasonornoreason,inaccordancewiththetermsofthisAgreement.D.Withinthefirsteighteen(18)monthsofthetermofthisAgreementandthereafterfortheremainderofthetermofthisAgreement,EmployeeagreesthatheshallresidewithinthephysicalboundaryoftheEmployer’selectricorwaterserviceterritory.E.IfthePartieshavenottakenanyactiontoextendorrenewthisAgreement,orneitherPartyhastakenactiontoterminatethisAgreement,withinsix(6)monthsofthe{00885101.DOG2}
endofthetermofthisAgreement,thenthisAgreementshallautomaticallyextendfortwelve(12)months.Section2:DutiesandAuthorityEmployeeshallexercisemanagementandcontrolovertheDistrictandshalldirecttheoperationsandmanagementthereofinaccordancewiththepoliciesanddirectionsoftheBoardandwithintheadoptedbudgetapprovedbytheBoard.Section3:BaseSalaryA.EmployeragreestopayEmployeeanannualBaseSalaryofTwoHundredSeventy-FiveThousandDollars($275,000.00).B.BeginningonJanuary1,2021andoneachJanuary1thereafter,duringthetermofthisAgreement,EmployershalladjusttheBaseSalarybythesamecostoflivingadjustmentprovidedbyEmployertoitsotheremployees.C.BaseSalaryshallbepayableininstallmentsatthesametimethatotheremployeesoftheEmployerarepaid.Section4:InsuranceBenefitsA.TheEmployeragreestoprovidetheEmployeewiththesamemedical,dental,visionandlifeinsuranceasareprovidedtootheremployeesofEmployerinaccordancewithEmployer’spolicies.Section5:Vacation,AdministrativeDays,SickLeaveandHolidaysA.DuringeachyearofthisAgreement,Employeeshallaccruetwenty(20)daysofvacationleave.EmployershallcreditEmployeewithfive(5)daysofvacationleaveonEmployee’sfirstdayofwork.B.TheEmployeeshallannuallyaccrueten(10)daysofAdministrativeLeaveinaccordancewithEmployer’spolicy.C.Employeeshallannuallyaccruetwelve(12)daysofsickleaveinaccordancewithEmployer’spolicy.AccruedunusedsickleavedayscanbeusedinaccordancewithEmployer’sSickLeaveIncentivePlanorconverteduponretirementforadditionalservicetimeforCa1PERSretirementbenefitsinaccordancewiththeEmployer’sagreementwithCa1PERSandCa1PERS‘policy.D.TheEmployeeshallannuallyreceiveeleven(11)daysofpaidholidaysinaccordancewithEmployer’spolicy.E.TheEmployeeisentitledtoaccrueallvacationandadministrativeleaveinaccordancewiththeDistrict’sCodeandpoliciesthatareapplicabletoothermanagement(00885101.DOC2}2
employeesandintheeventtheEmployee’semploymentisterminated,eithervoluntarilyorinvoluntarily,theEmployeeshallbecompensatedforallaccruedunusedvacationandadministrativeleave.Section6:VehicleEmployershallprovideEmployeewithamonthlyvehicleallowanceofEightHundredFiftyDollars($850.00)foranall-wheeldrivevehicle.Section7:RetirementTheEmployeragreestoenrolltheEmployeeintotheCa1PERSretirementsysteminaccordancewiththeEmployer’sagreementwithCa1PERSandtomakecontributionsontheEmployee’sbehalfinaccordancewiththeEmployer’spolicy.Employee’scontributionshallbeatthesamelevelasEmployer’smanagementemployees.Section8:RelocationAssistanceTheDistrictwillprovideEmployeerelocationassistanceinanamountnottoexceedTenThousandDollars($10,000.00)andequaltothelowestofthreebids,orsuchlessernumberasarereasonablyavailabletoEmployee,ofreputablemovingcompaniestorelocateEmployeeshouseholdfromitscurrentlocationinGrassValley,CaliforniatoGeneralManager’sresidencewithintheEmployer’swaterorelectricserviceboundarieswithineighteen(18)monthsoftheeffectivedateofthisAgreement.Section9:OtherBenefitsExceptasotherwiseprovidedinthisAgreement,asagreedtobyEmployerandEmployeeorrequiredbyapplicablelaw,theEmployeeshallbeentitledtothesamebenefitsthatareenjoyedbyothermanagementemployeesofEmployerinaccordancewithEmployer’spolicies.Section10:GeneralBusinessExpensesA.EmployeragreestoreasonablybudgetforandtopayforprofessionalduesandsubscriptionsoftheEmployeenecessaryforcontinuationandfullparticipationinnational,regional,state,andlocalassociations,andorganizationsnecessaryanddesirablefortheEmployee’scontinuedprofessionalparticipation,growth,andadvancement,andforthegoodoftheEmployer.B.EmployeragreestoreasonablybudgetforandtopayfortravelandsubsistenceexpensesofEmployeeforprofessionalandofficialtravel,meetings,andoccasionstoadequatelycontinuetheprofessionaldevelopmentofEmployeeandtopursuenecessaryofficialfunctionsforEmployer,andsuchothernational,regional,state,andlocalgovernmentalgroupsandcommitteesinwhichEmployeeservesasamember.{00885101.DOC2}3
C.EmployeragreestoreasonablybudgetforandtopayfortravelandsubsistenceexpensesofEmployeeforshortcourses,institutes,andseminarsthatarenecessaryfortheEmployee’sprofessionaldevelopmentandforthegoodoftheEmployer.D.Employerrecognizesthatcertainexpensesofanon-personalbutjob-relatednatureareincurredbyEmployeeandagreestoreimburseortopaysaidgeneralexpenses.E.TheEmployeracknowledgesthevalueofhavingEmployeeparticipateandbedirectlyinvolvedinlocalcivicclubsororganizations.Accordingly,Employershallpayforthereasonablemembershipfeesand/orduestoenabletheEmployeetobecomeanactivememberinlocalcivicclubsororganizations.F.TheEmployershallprovideEmployeewithacomputer,software,andsmartphonerequiredfortheEmployeetoperformthejobandtomaintaincommunication.G.TheEmployershallprovideEmployeewithanannualallowanceofFiveHundredDollars($500.00)forthepurchaseofEmployee’spersonalprotectiveequipmentortools.Section11:TerminationForthepurposeofthisAgreement,terminationshalloccurwhen:A.ThreeormoreoftheEmployer’sBoardofDirectorsvotestoterminatetheemploymentofEmployeeatadulynoticedmeeting.B.IftheEmployerreducesthebasesalary,compensationoranyotherfinancialbenefitoftheEmployeeinamannerthatdiffersmateriallyfromsimilarreductionsthataffectotheremployeesoftheEmployer,suchactionshallberegardedasatermination.C.IftheEmployeeresignsfollowinganoffertoacceptresignation,whetherformalorinformal,byarepresentativeofamajorityoftheEmployer’sBoardofDirectorsauthorizedtoactonbehalfoftheBoardofDirectors,thentheEmployeemaydeclareaterminationasofthedateoftheoffertoacceptresignation.D.BreachofthisAgreementdeclaredbyeitherPartywithathirty(30)daycureperiod,providedsuchbreachiscurable,foreitherEmployeeorEmployer.WrittennoticeofabreachofcontractshallbeprovidedinaccordancewiththeprovisionsofSection24.Section12:SeverancePayA.SeverancepayshallbeprovidedtotheEmployeewhenemploymentisterminated,asdefinedinSection11,withoutcause.B.IftheEmployeeisterminatedwithoutcause,theEmployershallprovideEmployeeaseverancepaymentequaltotwelve(12)month’sEmployee’sBaseSalaryatthecurrentrateofpayatthetimeofterminationandpayforcontinuationoftheGeneral{00885101.DOC2}4
Manager’sDistricthealthinsurancebenefitsthroughCOBRAforsix(6)monthsfromandafterthedateoftermination,oruntilGeneralManagerfindsotheremployment,whicheveroccursfirst.TheseverancepaymentshallbepaidinalumpsumunlessotherwiseagreedtobytheEmployerandtheEmployee.C.IftheEmployeeisterminatedwithoutcause,theEmployeeshallalsobecompensatedforallvacationleave,allpaidholidays,andproratedadministrativeleavethatwouldaccrueduringthetwelve(12)monthperiodfollowingtermination.D.IftheEmployeeisterminatedforcause,whichisdefinedasbeingterminatedbecauseofaviolationofanyoftheEmployer’spolicies,forareasonthatconstitutesgroundsfordisciplinepursuanttotheEmployer’spoliciesorconvictionofafelony,convictionofamisdemeanorinvolvingmoralturpitudeortheentryofapleaofnobcontendreorapleabargaintoeithersuchcrimeorcrimes,thentheEmployershallnotpaytheEmployeetheseverancepaymentortheinsurancepremiumsassetforthinthisSection12.E.IntheeventtheEmployeeisconvictedofacrimethatinvolvesabuseofhispositionorofficepursuanttoGovernmentCodesection53243.4,hemustfullyreimbursetheEmployerforspecifiedcostsunderGovernmentCodesection53243,etseq.,includingbutnotlimitedto:(a)ifEmployeeisprovidedwithadministrativeleavepaypendinganinvestigation,EmployeeshallberequiredtofullyreimbursetheEmployersuchamountspaid;(b)ifEmployerpaysforthecriminallegaldefenseofEmployee(whichwouldbeinEmployer’ssolediscretion,asitisgenerallynotobligatedtopayforacriminaldefense),EmployeeshallberequiredtofullyreimbursetheEmployersuchamountspaid;and(c)ifthisAgreementisterminated,anyseverancepayrelatedtotheterminationthatEmployeemayreceivefromtheEmployershallbefullyreimbursedtotheEmployerorshallbevoidifnotyetpaidtoEmployee.ForpurposesofthisSection,abuseofofficeorpositionmeanseither:(i)anabuseofpublicauthority,including,butnotlimitedto,waste,fraud,andviolationofthelawundercolorofauthority;or(ii)acrimeagainstpublicjustice.F.GeneralReleaseRequired.PaymentofanyseverancepayasprovidedinthisSection12shallbeconditionedupontheEmployeesigningageneralreleaseagreementinsubstantiallytheformofthatwhichisattachedheretoasExhibit“A”,withsuchchangesasarerequiredbyandacceptabletotheEmployer,foreverreleasingandwaivinganyandallclaimsandshallconstituteliquidateddamagesandEmployee‘ssoleandexclusiveremedyforanyterminationofthisAgreementbytheEmployer.TheEmployeeshallreceivetheseverancepaymentinalumpsumpaymentminusallapplicabledeductionswithinfifteen(15)businessdaysafterexecutionofthewaiverandreleaseagreement.TheEmployeeshallnotreceiveanyseverancepaymentifsuchageneralreleaseagreementisnotexecutedbytheParties.TheEmployeeshallreceivepaymentforallaccruedunusedvacationandadministrativeleaveatthetimeofhisseparationfromemployment.{00885101.DOC2}5
Section13:ResignationIntheeventthattheEmployeevoluntarilyresignshispositionwiththeEmployer,theEmployeeshallprovideaminimumofthirty(30)days’noticeunlessthePartiesagreeotherwise.TheEmployeeshallnotreceiveanyseverancepayifhevoluntarilyresignsorretires.Section14:PerformanceEvaluationA.Employer’sBoardofDirectorsshallconductaperformancereviewafteremployee’sfirstsix(6)monthsofemploymentanditshallannuallyestablishperformancegoalsandobjectivesforthecomingyearandreviewthepastperformanceoftheEmployeenolaterthanJanuary31ofeachyear,subjecttoaprocess,form,criteria,andformatfortheevaluationwhichshallbemutuallyagreeduponbytheEmployer’sBoardofDirectorsandEmployee.B.Theprocess,ataminimum,shallincludetheopportunityforbothPartiesto:(1)Establishgoalsandobjectivesforthecomingyear,(2)prepareawrittenevaluation,(3)meetanddiscusstheevaluation,and(4)presentawrittensummaryoftheevaluationresults.ThefinalwrittenevaluationshouldbecompletedanddeliveredtotheEmployeewithinthirty(30)daysoftheevaluationmeeting.Section15:HoursofWorkEmployeeshalldevotehisfull-timeeffortsandsuchtimeasisrequiredtoperformhisdutiesasEmployer’sGeneralManager.Employeeacknowledgesandagreesthattherearenosethoursofworkforthisposition,heshallbeavailableatalltimes.Section16:OutsideActivitiesEmployeeagreestoremainintheexclusiveemploymentoftheDistrictduringthetermofthisAgreementandheshallneitheracceptotheremploymentorbecomeemployedbyanyotherperson,business,ororganizationduringthetermofthisAgreement.RecognizingthatcertainoutsideconsultingorteachingopportunitiesprovideindirectbenefitstotheEmployerandthecommunity,theEmployeemayelect,withapprovaloftheBoardofDirectors,toacceptlimitedteaching,consulting,and,otherbusinessopportunitieswiththeunderstandingthatsucharrangementsshallnotconstituteinterferencewith,nor,aconflictofinterestwithhisresponsibilitiesunderthisAgreement.Section17:IndemnificationA.Beyondthatrequiredunderfederal,stateorlocallaw,Employershalldefend,saveharmlessandindemnifyEmployeeagainstanytort,professionalliabilityclaimordemandorotherlegalaction,whethergroundlessorotherwise,arisingoutofanalleged{00885101DOC2}6
actoromissionoccurringintheperformanceofEmployee’sdutiesasGeneralManagerorresultingfromtheexerciseofjudgmentordiscretioninconnectionwiththeperformanceofprogramdutiesorresponsibilities,unlesstheactoromissioninvolvedwillfulorwantonconduct.TheEmployeemayrequest,andtheEmployershallnotunreasonablyrefusetoprovide,independentlegalrepresentationatEmployer’sexpenseandEmployermaynotunreasonablywithholdapproval.Legalrepresentation,providedbyEmployerforEmployee,shallextenduntilafinaldeterminationofthelegalactionincludinganyappealsbroughtbyeitherParty.TheEmployershallindemnifyEmployeeagainstanyandalllosses,damages,judgments,interest,settlements,fines,courtcostsandotherreasonablecostsandexpensesoflegalproceedingsincludingattorneys’fees,andanyotherliabilitiesincurredby,imposedupon,orsufferedbysuchEmployeeinconnectionwithorresultingfromanyclaim,action,suit,orproceeding,actualorthreatened,arisingoutoforinconnectionwiththeperformanceofhisduties.AnysettlementofanyclaimmustbemadewithpriorapprovaloftheEmployerinorderforindemnification,asprovidedinthisSection,tobeavailable.B.EmployeerecognizesthatEmployershallhavetherighttocompromiseand,unlesstheEmployeeisapartytothesuitwhichEmployeeshallhaveavetoauthorityoverthesettlement,settleanyclaimorsuit;unless,saidcompromiseorsettlementisofapersonalnaturetoEmployee.Further,EmployeragreestopayallreasonablelitigationexpensesofEmployeethroughoutthependencyofanylitigationtowhichtheEmployeeisaparty,witnessoradvisortotheEmployer.SuchexpensepaymentsshallcontinuebeyondEmployee’sservicetotheEmployeraslongaslitigationispending.Section18:BondingEmployershallbearthefullcostofanyfidelityorotherbondsrequiredoftheEmployee.Section19:DistrictPropertyEmployeeagreesthatmaterials,regardlessoftheirform,thatEmployeecreates,receives,orproducesinconnectionwiththisAgreementand/orEmployee’semploymentareandwillremaintheexclusivepropertyoftheEmployer.EmployeewilldeliveralloriginalsandallcopiesofsuchmaterialstotheEmployerthatareinEmployee’spossessionorcontroluponterminationorexpirationofthisthisAgreementoruponanyrequestfromtheEmployer.Section20:Non-DisclosureofProprietaryorConfidentialInformation:Employeewillnotatanytime,inanyformormanner,eitherdirectlyorindirectly,exceptinthedischargeofEmployee’sduties,divulge,disclose,orcommunicatetoanyperson,firm,orcorporationinanymannerwhatsoeveranyProprietaryorConfidentialInformationproduced,received,acquiredorlearnedbyEmployeewhileperformingthedutiesasanemployeeoftheEmployer.ForpurposesofthisAgreement,Proprietaryand{00885101.DOC2}7
ConfidentialJrifbrmationincludes,butisnotlimitedto,allinformationandanyideaspertaininginanymannertothebusinessoftheEmployer,tradesecrets,inventions,processes,formulae,data,know-how,software,strategies,informationaboutEmployer’sofficials,employeesandcustomers,attorney-clientprivilegedinformationandanyinformationconcerninganymattersdetrimentallyaffectingorrelatingtothebusinessoftheEmployerwithoutregardtowhetheranyoralloftheforegoingmatterswouldbedeemedconfidential,material,orimportant.DuringEmployee’semploymentbyEmployer,EmployeeshalluseProprietaryandConfidentialInformationonlyforthebenefitoftheEmployerandasis,ormaybe,necessarytoperformEmployee’sjobresponsibilitiesunderthisAgreement.FollowingterminationorexpirationofthisAgreement,EmployeeshallnotuseanyProprietaryorConfidentialInformationandshallnotdiscloseanyProprietaryorConfidentialInformationtoanypersonorentitywithoutthepriorexpresswrittenconsentoftheEmployer.Section21:ConflictofInterestA.BecauseofthedutiesandroleoftheEmployeeonbehalfoftheEmployer,theEmployeeshallnot,duringthetermofthisAgreement,individually,asapartner,jointventurer,officerorshareholder,investorparticipateinanybusinessventureconductingbusinessintheserviceboundariesoftheEmployer,exceptforstockownershipinanycompanywhosecapitalstockispubliclyheldandregularlytraded,withoutthepriorapprovaloftheBoardofDirectors.ForandduringthetermofthisAgreement,theEmployeefurtheragrees,exceptforapersonalresidenceorresidentialpropertyacquiredorheldforfutureuseasEmployee’spersonalresidence,nottoinvestinanyotherrealestateorrealpropertyimprovementswithintheserviceboundariesoftheDistrict,withoutpriorconsentoftheBoardofDirectors.B.TheEmployeeshallalsobesubjecttotheconflictofinterestprovisionsoftheCaliforniaGovernmentCodeandanyconflictofinterestcodeapplicabletoEmployee’semployment.TheEmployeeisresponsibleforsubmittingtotheDistrictClerktheappropriateConflictofInterestStatementsatthetimeofappointment,annuallythereafter,andatthetimeofseparationfromtheposition.Section22:AssistanceinLitigationEmployeeagreestoprovideinformationandproperassistancetotheEmployerasitmayreasonablyrequirewithanylitigation,arbitrationormediationinwhichitmaybecomeinvolved,eitherduringorafterterminationorexpirationofthisAgreement.Employeefurtheragreesnottodiscuss,revealorconveyanyinformationordocumentspertainingtotheEmployertoanypersonorentity,orattorneyfororrepresentativeofanypersonorentity,withactualorpotentialclaimsadversetotheEmployerexceptpursuanttoduly{00885101.DOC2}
issuedlegalprocessorasotherwiseauthorizedbytheEmployer.EmployeeagreestonotifytheEmployerimmediatelyuponreceiptofanylegalprocessorcontactpertainingtotheEmployer.Section23:OtherTermsandConditionsofEmploymentTheEmployer,onlyuponagreementwithEmployee,shallfixanysuchothertermsandconditionsofemployment,asitmaydeterminefromtimetotime,relatingtotheperformanceoftheEmployee,providedsuchtermsandconditionsarenotinconsistentwithorinconflictwiththeprovisionsofthisAgreement,theEmployer’spolicies,oranylaw.Section24:NoticesA.NoticepursuanttothisAgreementshallbegivenbydepositinginthecustodyoftheUnitedStatesPostalService,postageprepaid,addressedasfollows:EMPLOYER:PresidentoftheBoardofDirectorsTruckeeDonnerPublicUtilityDistrict11570DonnerPassRoadTruckee,CA96160EMPLOYEE:RemlehScherzinger,MBA,CSDM,P.E.12311McCourtneyRdGrassValley,CA95949B.Alternatively,noticerequiredpursuanttothisAgreementmaybepersonallyservedinthesamemannerasisapplicabletociviljudicialpractice.NoticeshallbedeemedgivenasofthedateofpersonalserviceorasthedateofdepositofsuchwrittennoticeinthecourseoftransmissionintheUnitedStatesPostalService.Section25:GeneralProvisionsA.Integration.ThisAgreementsetsforthandestablishestheentireunderstandingbetweentheEmployerandtheEmployeerelatingtotheemploymentoftheEmployeebytheEmployer.AnypriordiscussionsorrepresentationsbyorbetweenthePartiesaremergedintoandrenderednullandvoidbythisAgreement.ThisAgreementmayonlybeamendedbymutualwrittenagreementofbothParties.SuchamendmentsshallbeincorporatedandmadeapartofthisAgreement.B.BindingEffect.{00885101.DOC2}9
ThisAgreementshallbebindingontheEmployerandtheEmployeeaswellastheirheirs,assigns,executors,personalrepresentativesandsuccessorsininterest.C.EffectiveDate.ThisAgreementshallbecomeeffectiveonJuly3,2020.D.Severability.TheinvalidityorpartialinvalidityofanyportionofthisAgreementwillnotaffectthevalidityofanyotherprovision.IfanyprovisionofthisAgreementisheldtobeinvalid,theremainingprovisionsshallbedeemedtobeinfullforceandeffectasiftheyhavebeenexecutedbybothPartiessubsequenttotheexpungementorjudicialmodificationoftheinvalidprovision.E.Venue.AnyactiontointerpretorenforcethisAgreementshallbecommencedandmaintainedintheCountyofNevada,StateofCalifornia.F.Choiceoflaw.ThisAgreementshallbegovernedbythelawsofCalifornia.G.Attorneyfees.TheprevailingPartyinanyactiontointerpretorenforcethisAgreementshallbeentitledtoreasonableattorneyfees,costandexpenseinadditiontoanyotherrelieftowhichthePartymaybeentitled.H.AlternateDisputeResolution.BothPartiesagreetomediateanydisputeorclaimarisingbetweenthemoutofthisAgreementwhichcannotbeadjustedbyandbetweenthembeforeresortingtocourtaction.Mediationfees,ifany,shallbedividedbetweentheParties.IfeitherPartycommencesacourtactionagainsttheother,basedonadisputeorclaimtowhichthisparagraphapplieswithoutfirstattemptingtoresolvethematterthroughmediation,thePartycommencingsuchactionshallnotbeentitledtorecoverattorneyfees,eveniftheywouldotherwisebeavailableinanysuchcourtaction.I.Counterparts.ThisAgreementmaybeexecutedinoneormorecounterparts,eachofwhichshallbedeemedanoriginal,butallofwhichtogethershallconstituteoneandthesameinstrument{00885101.DOC2}io
andeachPartymaydeliveritsexecutedcounterparttotheotherPartyviafacsimileoremail.I.Waiver.NowaiverofanybreachofanycovenantorprovisioninthisAgreementshallbedeemedawaiverofanyothercovenantorprovisioninthisAgreementandnowaivershallbevalidunlessinwritingandexecutedbythewaivingParty.Signedthisdate:_________________,2020Employer:Employee:JeffBender,P.E.RemlehScherzinger,MBA,CSDM,P.E.PresidentoftheBoardTruckeeDonnerPublicUtilityDistrict{00885101.DOC2}11
EXHIBIT“A”GENERALRELEASEAGREEMENTThisGeneralReleaseAgreement(“ReleaseAgreement”)isenteredintobyandbetweenRemlehScherzinger(“Employee”)andTRUCKEEDONNERPUBLICUTILITYDISTRICT(“District”),inlightofthefollowingfacts:A.SeparationofEmployment.ThePartiesacknowledgethatpursuanttoSection12oftheEmploymentAgreementbyandbetweenDistrictandEmployeedated____________________‘2020,(“EmploymentAgreement”),the[DistrictterminatedEmployeefromEmployee’sorEmployeeterminatedEmployee’sJat-willemploymentasof(“SeparationDate”).PursuanttoSection12oftheEmploymentAgreement,EmployeehasvoluntarilyagreedtoacceptthefollowingseverancepaymentfromtheDistrictinconsiderationofthetermsofthisReleaseAgreement.B.SeverancePayment.EmployeeacknowledgesthattheDistricthasnopriorobligationtoprovideEmployeewithanyseverancebenefits.However,pursuanttoSection13oftheEmploymentAgreement,andasconsiderationforthisAgreementandtheconditionssetforthherein,theDistrictagreestoprovidetheEmployeethefollowingbenefits(collectively,“theSeverancePayment”):1.[Insertnumber]months’severancepayatEmployee’scurrentrateofpayintheamountof[insertwrittendollaramountJdollarsand[insertwrittencentsamountJcents[insertfullamount$xx,xxx.xxJ,lessapplicablepayrolltaxwithholdingsanddeductions,inonelumpsumpayment;andTheSeverancePaymentshallbemadewithinfifteen(15)daysafterEmployeeandEmployerexecutethisAgreementorontheSeparationDate,whicheverislater,andonlyifEmployeehasnotexercisedEmployee’srightofrevocationundersectionK,hereinbelow.C.PaymentforEarnedCompensation.EmployeeacknowledgesthatEmployeehasbeenpaidforallsalary,unusedandaccruedvacationandotherbenefitsinaccordancewithDistrictpolicies,ifanyearnedbyEmployeeuptoandincludingtheSeparationDate.D.ReleaseofClaimsandParties.AsconsiderationfortheSeverancePaymentandagreementsdescribedabove,EmployeeonbehalfofEmployee,Employee’sheirs,representatives,successors,andassigns,herebyirrevocablyandunconditionallywaives,releasesandforeverdischargestheDistrictand/oranyofitsmembersoftheDistrict’sBoardofDirectors,officials,officers,deputies,employees,agents,servants,representatives,successors,assigns,{00885101.DOC2}12
predecessors,divisions,branches,orattorneys,andallpersonsactingby,through,underorinconcertwiththeDistrict,pastorpresent(collectively“ReleasedParties”),andeachandallofthem,fromanyandallcharges,complaints,lawsuits,claims,liabilities,claimsforrelief,obligations,promises,agreements,contracts,interests,controversies,injuries,damages,actions,causesofaction,suits,rights,demands,costs,losses,debts,liens,judgments,indebtedness,andexpenses(includingattorneys’fees,interest,expenses,andcostsactuallyincurred),ofanynaturewhatsoever,whetherinlaworinequity,KNOWNORUNKNOWN,suspectedorunsuspected,actualorpotential(hereinafterreferredtoas“claim”or“claims”)whichEmployeeatanytimehadorclaimedtohave,orwhichEmployeemayhaveorclaimtohaveregardinganyandallfactsandcircumstancesthathaveoccurredasofthedateofthisReleaseAgreement,including,withoutlimitation,anyandallclaimsrelatedorinanymannerincidentaltoEmployee’semploymentwiththeDistrictandEmployee’sseparationfromemploymentwiththeDistrict.ItisexpresslyunderstoodbyEmployeethatamongthevariousrightsandclaimsbeingwaivedbyEmployeeinthisreleasearethosearisingundertheAgeDiscriminationinEmploymentActof1967(29U.S.C.§621,et.seq.).E.Section1542Waiver.ThemattersspecificallyreleasedanddismissedbythisReleaseAgreementshallinclude,butarenotnecessarilylimitedto,allclaimsandcausesofactionwhichEmployeehasagainsttheDistrictand/oranyoftheReleasedPartiesarisingonorbeforethedatethatthisReleaseAgreementisexecuted,andANYOTHERCLAIMOFANYTYPEWHATSOEVERAGANSTTHEDISTRICT,AND/ORANYOTHERRELEASEDPARTY;WHETHERSUCHCLMMISKNOWNORUNKNOWNTOEMPLOYEEAND/OREMPLOYEE’SREPRESENTATIVESANDATTORNEYSarisingonorbeforethedatethatthisReleaseAgreementisexecuted.AsafurtherconsiderationandinducementforthisReleaseAgreement,totheextentpermittedbylaw,EmployeeherebywaivesandreleasesanyandallrightsunderSection1542oftheCaliforniaCivilCodeoranyanalogousstate,local,orfederallaw,statute,rule,orderorregulation,EmployeehasormayhavewithrespecttoanyclaimsagainsttheDistrict.CaliforniaCivilCodeSection1542readsasfollows:“AGENERALRELEASEDOESNOTEXTENDTOCLAIMSTHATTHECREDITORORRELEASINGPARTYDOESNOTKNOWORSUSPECTTOEXISTE\JHISORHERFAVORATTHETIMEOFEXECUTINGTHERELEASEANDTHAT,IFKNOWNBYHIMORHER,WOULDHAVEMATERIALLYAFFECTEDHISORHERSETTLEMENTWITHTHEDEBTORORRELEASEDPARTY.”EmployeeherebyexpresslyagreesthatthisReleaseAgreementshallextendandapplytoallunknown,unsuspected,andunanticipatedclaims,injuries,lossesanddamages,aswellasthosethatarenowknownand/ordisclosed.{00885101.DOC2}13
F.EntireAgreementandAdmissibility.ThisReleaseAgreementconstitutesthecompleteunderstandingbetweenoramongEmployeeontheonehand,andtheDistrictandanyotherReleasedPartyontheotherhandandsupersedesanyandallprioragreements,promises,representationsorinducements,nomattertheirform,concerningthesubjectmatterofthisReleaseAgreement.ThePartiesdesirethatthisReleaseAgreementrepresentsasingleintegratedcontractexpressingtheentireagreementofthePartieswithrespecttomatterssetforthherein.Nopromises,agreementsormodificationstothisReleaseAgreementmadesubsequenttotheexecutionofthisReleaseAgreementbythesePartiesshallbebindingunlessreducedtowritingandsignedbyauthorizedrepresentativesoftheseParties.ThePartiestothisReleaseAgreementrepresentthatthisReleaseAgreementmaybeusedasevidenceinanysubsequentproceedinginwhichanyofthePartiesallegesabreachofthisReleaseAgreementorseekstoenforceitsterms,provisionsorobligations.G.RepresentationbyCounsel.EmployeeacknowledgesthatEmployeeisfullyawareofEmployee’srighttodiscussanyandallaspectsofthismatterwithanattorneyofEmployee’schoice,thattheDistricthasadvisedEmployeeofthatright,thatEmployeehascarefullyreadandfullyunderstandstheprovisionsofthisReleaseAgreementandthatEmployeeisvoluntarilyenteringintothisReleaseAgreement.H.Severability.ShouldanyoftheprovisionsortermsofthisReleaseAgreementbedeterminedillegal,invalid,orunenforceablebyanycourtorgovernmentalagencyofcompetentjurisdiction,validityoftheremainingparts,terms,orprovisions,shallnotbeaffectedtherebyandsaidillegal,invalid,orunenforceablepart,term,orprovisionshallbedeemednottobeapartofthisReleaseAgreement.I.GoverningLaw.ThisReleaseAgreementismadeandenteredintointheStateofCalifornia,andshallbegoverned,interpretedandenforcedunderthelawsoftheStateofCalifornia.ThePartiesagreethatjurisdictionand/orvenueofanyactioninvolvingthevalidity,interpretation;orenforcenientofthisReleaseAgreementoranyofitsterms,provisions,orobligations,orclaimingbreachthereof,shallexistexclusivelyinacourtorgovernmentagencylocatedwithintheCountyofNevada,StateofCalifornia.ThePartiesfurtheragreethatthisReleaseAgreementmaybeusedasevidenceinanysubsequentproceedinginwhichanyofthePartiesallegeabreachofthisReleaseAgreementorseekstoenforceitsterms,conditions,provisionsorobligations.J.TimeforAcceptanceofAgreement.Employeemayacceptthisofferbysigningbelownolaterthantwenty-one(21)daysfromthedayEmployeereceivesitandbyreturningthesignedanddatedReleaseAgreementtotheDistrictnolaterthanthecloseofbusinessonthetwenty-first(21st)dayafterthedateEmployeereceivesthisoffer.f00885101.DOC2}14
K.RightofRevocation.ThisReleaseAgreementcontainsawaiverandreleaseofallclaimsthatEmployeemaycurrentlyhaveundertheAgeDiscriminationinEmploymentActof1967(29U.S.C.§621-634).EmployeeunderstandsandagreesthatEmployee:1.HasreviewedallaspectsofthisReleaseAgreement;2.HascarefullyreadandfullyunderstandsalloftheprovisionsofthisReleaseAgreement;3.Hashadafulltwenty-one(21)dayswithinwhichtoconsiderthisReleaseAgreementbeforeexecutingit;4.Is,throughthisReleaseAgreement,releasingtheDistrictandtheReleasedPartiesfromanyandallclaimsEmployeemayhave;5.KnowinglyandvoluntarilyagreestoallofthetermssetforthinthisReleaseAgreement;6.KnowinglyandvoluntarilyintendstobelegallyboundbythetermssetforthinthisReleaseAgreement;7.Wasadvised,andbythisReleaseAgreementisadvisedinwriting,toconsiderthetermsofthisReleaseAgreementandconsultwithEmployee’sattorneypriortoexecutingthisReleaseAgreement;8.Hasafullseven(7)daysfollowingtheexecutionofthisReleaseAgreementtorevokethisReleaseAgreementandhasbeenandisherebyadvisedinwritingthatthisReleaseAgreementshallnotbecomeeffectiveorenforceableuntiltherevocationperiodhasexpired;and9.UnderstandsthatrightsorclaimsincludingthoseundertheAgeDiscriminationinEmploymentActof1967(29U.S.C.§621-634)thatmayariseafterthedateofthisReleaseAgreementisexecutedarenotwaived.PLEASEREADCAREFULLY.THISAGREEMENTANDRELEASEINCLUDESARELEASEOFALLKNOWNANDUNKNOWNCLAIMS.L.FeesandCosts.EmployeeandDistrictagreethatintheeventoflitigationrelatingtothisReleaseAgreement,theprevailingPartyshallbeentitledtorecoverreasonableattorneys’feesandcosts.ThisReleaseAgreementisenteredintothis______dayof___________,[202_I.Employer:Employee:___
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_____________________RemlehScherzinger{00885101DOC2}15
PresidentoftheBoardTruckeeDonnerPublicUtilityDistrict{00885101.DOC2}16